Egypt’s stock exchange wrapped up the trading week in positive territory on Thursday, May 22, 2025, buoyed by broad-based gains across indices and a surge in foreign investor interest.
The benchmark EGX30 index rose 0.44%, closing at 31,975.63 points, its highest level this month, while the EGX70, which tracks small and medium enterprises, saw a notable jump of 0.75%, signaling rising investor appetite beyond blue chips.
The broader EGX100 index added 0.69%, reaching 12,776.68 points, reflecting a general improvement in market sentiment, particularly in consumer goods and industrial sectors.
According to data from the Egyptian Exchange (EGX), non-Arab foreign investors emerged as net buyers, pumping over EGP 21.5 billion into Egyptian equities. This helped offset the net selling by local (EGP 21.2 billion) and Arab investors (EGP 237 million), signaling renewed international confidence in Egypt’s macroeconomic direction.
Dr. Yasmine El-Dessouki, capital markets analyst at Cairo Financial Institute, said, “The inflow of foreign funds is a strong vote of confidence in Egypt’s reform path and reflects a wider global search for emerging market opportunities with attractive valuations.”
In a twist that surprised many traders, the day’s top performers came from the flour milling and packaging sectors—industries often overlooked in favor of banking or real estate.
- Upper Egypt Flour Mills led gains with a massive 16.69% surge, closing at EGP 406.61/share, on speculation of government procurement contracts and rising wheat prices.
- East Delta Flour Mills climbed 12.41% to EGP 300.92/share, likely driven by investor rotation into defensive stocks.
- Universal for Paper and Packaging Materials (Unipack) saw an 11.97% gain, closing at EGP 1.31, amid rumors of a regional export contract, sources familiar with the company told MEO.
“These sectors are seen as hedges in times of inflation or currency pressures,” said Mohamed Kassem, portfolio manager at Nile Delta Asset Management. “What we’re witnessing is smart money diversifying within the EGX.”
Not all sectors fared equally. Some prominent decliners included:
- Creast Mark for Contracting and Real Estate Development, down 7.23%, closing at EGP 0.77. Analysts cite weak quarterly results and delayed project deliveries as reasons.
- Gogreen for Agricultural Investment lost 4.8%, ending at EGP 1.19, amid concerns over rising irrigation costs.
- Arabian Food Industries (DOMTY) declined 4.0% to EGP 21.59, as input cost concerns and slowing Q1 demand weigh on investor expectations.
The total market capitalization hit EGP 2.25 trillion, with several fund managers noting the index resilience despite macro headwinds including elevated inflation and fluctuating FX rates.
A senior trader at EFG Hermes, speaking on condition of anonymity, said: “The market is in a consolidation phase, but foreign flows, lower volatility, and sector rotation are signs that institutional investors are building longer-term positions.”
“Stability breeds confidence,” said Karim Saad, an independent market strategist. “EGX’s ability to attract foreign capital even with limited reforms finalized shows Egypt remains firmly on global investors’ radar.”
